‘Decisive action’ to break influence of gas on electricity prices

Families across the country will be better protected from energy crises, as government moves to break link between gas and electricity prices

  • Families across the country will be better protected from energy crises, as government moves to break link between gas and electricity prices
  • New plans include long‑term fixed‑price contracts for renewables, protecting families when gas prices spike
  • Immediate action to tax excess profits through the Electricity Generator Levy by raising the rate from 45% to 55%, ensuring an increased proportion of the extraordinary revenue generated when the gas price spikes is available to government to support businesses and households with the cost-of-living
  • Comes as government doubles down on drive for clean, homegrown power with raft of measures to unlock public land, speed up planning and cut bills for families

Plans to better protect families and businesses by ending the unfair way international gas prices push up electricity prices across Great Britain take a major step forward today.

Instability in the Middle East has shown that Britain’s reliance on international fossil fuel markets leaves families and businesses exposed to volatile gas prices, driving the cost-of-living crisis even though much of the country’s electricity comes from cheaper renewables and nuclear. 

When wars, geopolitical tensions or supply shocks abroad push up global gas prices, electricity bills rise with them, exposing families to crises they have no control over. 

Over time, this problem is easing as new clean energy projects are built on fixed price contracts that protect consumers from gas price volatility. But a significant share of renewable generation – about 30% of Britain’s power supply – is still exposed to wholesale prices set by gas, leaving families vulnerable when international prices rise.

Therefore, to shield families from future crises, today the government is setting out new measures to ‘break the link’, reducing the impact that volatile gas prices have on the price of electricity. This will be done by:

  • Voluntary long term fixed contracts: offered to existing low-carbon generators not on fixed‑price contracts – covering around a third of Britain’s power supply. This will help protect families and businesses from higher bills when gas prices spike, with contracts offered only where they deliver clear value for money for consumers
  • An updated Electricity Generators Levy: immediate action to tax excess profits through the Electricity Generator Levy by raising the rate from 45% to 55%, ensuring an increased proportion of the extraordinary revenues generated when the gas price spikes is available to government to support businesses and households with the impacts of the conflict in the Middle East on the cost of living

Measures announced today will further reduce the share of electricity exposed to gas price shocks and provide generators the economic incentive to move on to fixed contracts not linked to volatile gas. The government is monitoring the impact of the current crisis on energy bills and will be ready to step in to provide targeted support where necessary.

Britain has already moved from gas setting the price of electricity around 90% of the time in the early 2020s, to around 60% today. Through the government’s clean energy mission, it is estimated gas will set the wholesale price around half of the time by 2030.

Prime Minister Keir Starmer said: “We need to get off the fossil fuel rollercoaster – this will make energy bills more stable and take the pressure off family budgets.

“When global gas prices spike, people here shouldn’t be picking up the tab.

“Our focus is simple: easing pressure on household budgets now, while building a homegrown energy system that protects families from global instability in the years ahead.”

Energy Secretary Ed Miliband said: “As we face the second fossil fuel shock in less than 5 years, the lesson for our country is clear: The era of fossil fuel security is over, and the era of clean energy security must come of age.

“That’s why we’re doubling down on clean power, to give our country energy security and bring down bills for good.”

Chancellor Rachel Reeves said: “Hardworking British families and businesses should not bear the brunt of global gas price shocks while electricity generators are making exceptional profits.

“Alongside moving generators onto the competitive pricing assured through wholesale Contracts for Difference, increasing the EGL to 55% will help to break the link between high gas prices and high electricity prices – offering households and businesses stronger protection against future energy shocks.”

Further measures

Speaking today at the Good Growth Foundation, the Energy Secretary set out further measures to help cut bills for families and deliver more clean, homegrown power:

Bigger grants for households on heating oil and LPG

The crisis in the Middle East has impacted those on heating oil and LPG the hardest. The government is today announcing an increase to the Boiler Upgrade Scheme (BUS) grant for properties heated by oil and LPG, taking the total grant to £9,000. This will help those households and small businesses in England and Wales most impacted by rising energy prices, particularly in rural areas, to electrify their heating and provide greater certainty over energy bills.

Further details on Transitional Energy Certificates 

Today in advance of legislation, we are publishing further details on Transitional Energy Certificates to provide greater certainty and clarity for industry looking to invest in already-explored areas near existing licensed fields, supporting a fair and managed transition.

Faster upgrades for social housing 

The government is already investing £1.2 billion to upgrade 100,000 social homes over the next 2 years. To accelerate further, the government is today providing an additional £100 million of funding for the Social Housing Fund, subject to final approvals, to support the delivery of up to a total of 57,000 solar installations for households this financial year. Through the Social Housing Fund and social housing regulations in the ‘Warm Homes Plan’, this will help households cut bills by hundreds of pounds and support up to a million homes reach EPC C.

Solar panels for schools and colleges 

Building on the success of Great British Energy’s solar scheme, the government is backing the company to extend support for more rooftop solar installations on a further 100 schools and colleges this year.  Up to £40 million of government investment, subject to final approvals, Great British Energy will deliver new rooftop solar and renewable schemes – helping the public sector cut energy costs and reinvest savings. 

Public land 

Driving forward plans to massively expand renewables across the Public Estate – including using brownfield land, industrial sites and railway sites to host solar panels and wind turbines. This could unlock up to 10 GW of capacity, even using only a fraction of government land, powering the equivalent of around 5 million homes.

Planning and land rules

Streamlining outdated rules to unblock the grid and speed up clean, homegrown power, through the biggest overhaul of planning, land access and grid connection processes since the start of the government’s clean energy mission — cutting delays for essential grid upgrades and renewables, and exploring new routes for developers to build and connect their projects faster. 

EVs, heat pumps and solar 

Plans to make it easier for people to switch to cheaper electric transport and heating, by making EV chargers, solar panels and heat pumps easier to install for renters, flat-dwellers and households without a driveway.  

The government is exploring ways to ensure that low-income households can benefit from plug-in solar through our ‘Warm Homes Plan’ this year, and have earmarked up to £25 million with a view to piloting support for plug-in panels in partnership with local authorities and mayors: our vision is a street by street approach where tens of thousands of low-cost solar panels are delivered to those most in need.

Reformed National Pricing

Households and businesses will benefit from a cheaper, more efficient energy system through a new Reformed National Pricing Delivery Plan. The delivery plan shows how smarter planning and faster delivery of electricity infrastructure could unlock up to £20 billion in benefits between 2030 and 2050.

Government set to crack down on companies exploiting Middle East crisis to unfairly hike prices

  • Working people will be protected from unfair price rises with new plans set out by the government today to detect and crack down on companies if they exploit the crisis in the Middle East.
  • Ministers are concerned that some companies could exploit the crisis to carry out price gouging – when a company puts prices up to an unfair and unjustifiably high level during a crisis, knowing that customer have little choice but to pay.
  • To deal with this unfair practice, a new anti-profiteering framework is being brought in by the Government and regulators like the Competition and Markets Authority (CMA) to clamp down on price gouging if it takes place.
  • As part of that, the government will not hesitate to introduce new time-limited, targeted powers for the CMA and other key regulators if that is needed, and the exact powers are being worked through at pace.
  • The move will further strengthen our world-class competition and consumer protection regime, which is already protecting households, and comes as the CMA have stepped up their monitoring of fuel prices and accelerated their review of fuel margins made by businesses since the conflict began.
  • The announcement follows the Chancellor and Energy Secretary’s meeting with petrol retailers to discuss what more can be done to support motorists with the cost of living, and the Chancellor is expected to meet with supermarkets and banks to discuss how they can support consumers in the coming days.

A Government spokesperson said: “We are fighting your corner to keep the cost of living down in these uncertain times. We will not allow companies to exploit this crisis to hike their prices to unjustifiable levels.

“Whether at the fuel pump filling up your car or at the till paying for your groceries, we are working with regulators to make sure the price you pay is a fair one.”

The Chancellor will deliver more details later today.

Chancellor and Energy Secretary meet with fuel bosses as government orders crackdown on pump prices

  • Chancellor and Energy Secretary to meet with petrol retailers and energy suppliers in Downing Street today with a clear message: drivers must get a fair deal at the pump. 
  • Chancellor asks CMA to crack down on any rip‑offs on road fuel and heating oil — warning she “will not tolerate” firms exploiting the situation to make excess profits. 
  • Fuel Finder will help drivers spot the cheapest forecourt nearby, as Government takes action to ensure all major fuel retailers are signed up.

Rachel Reeves has written to the Competition and Markets Authority requesting it stays on high alert for unjustifiable price rises on petrol, diesel and heating oil, to support families and businesses. 

The Chancellor said she is determined to support people with the cost of living amid conflict in the Middle East and will not stand by if firms use uncertainty as cover to push up prices and protect margins at the expense of drivers. 

Her intervention comes ahead of a Downing Street roundtable on Friday evening, where petrol retailers and energy suppliers will be pressed on what they are doing to keep prices down — and what more they can do to ensure changes in costs are passed on fairly. 

Chancellor of the Exchequer Rachel Reeves said: “I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense.

“I’m backing drivers and families — and I expect a fair deal at the pump.” 

Energy Secretary Ed Miliband said: “Tackling the cost of living is our number one priority – all fuel retailers must sign up for Fuel Finder so drivers can find the cheapest price at the pump.  

“We will not hesitate to act to protect consumers against any unfair practices.”

TODAY (Friday), the Chancellor and Energy Secretary will call on industry to explain why prices vary so widely, how quickly forecourts respond when costs ease, and what immediate steps firms will take to make sure motorists aren’t left paying over the odds.

The Chancellor noted earlier this week that prices varied from £1.27 per litre to £1.80 per litre between forecourts.

This comes after the Energy Secretary met with the CEO of the Competition and Markets Authority on Tuesday 10 March to discuss ensuring consumers were protected from any unfair price rises.

Drivers should not have to guess whether they’re being overcharged — so the UK Government is accelerating its Fuel Finder, making it easier to see who’s cheapest locally and to take business away from the priciest pumps. 

All major supermarkets have confirmed they are now providing real-time data to the government’s Fuel Finder scheme, with almost 90% of retailers already registered, and government taking action on the final 10%. 

Greater transparency on prices will drive up competition and is set to see households who own a car save on average £40 a year at the pump.   

And the message to any retailer dragging their feet is straightforward: if you won’t be transparent, you’ll be called out — because sunlight on prices is one of the strongest tools consumers have to force competition and drive costs down.

Men in suits: World leaders discuss Middle East and Ukraine crises

The Prime Minister met President Emmanuel Macron of France, Chancellor Olaf Scholz of Germany and President Joseph R. Biden, Jr. of the United States yesterday in Berlin.

The leaders condemned Russia’s continued war of aggression against Ukraine, discussed their plans to provide Ukraine with additional security, economic, and humanitarian assistance, including leveraging the extraordinary revenues of immobilized Russian sovereign assets – as decided at the G7 Summit, discussed President Zelenskyy’s Victory Plan, and reiterated their resolve to continue supporting Ukraine in its efforts to secure a just and lasting peace, based on international law, including the United Nations Charter, and respect for sovereignty and territorial integrity.

The leaders also discussed events in the Middle East, in particular the implications of the death of Yahya Sinwar, who bears responsibility for the bloodshed of the October 7th terrorist attack, for the immediate necessity to bring the hostages home to their families, for ending the war in Gaza, and ensure humanitarian aid reaches civilians.

The leaders also reiterated their condemnation of Iran’s escalatory attack on Israel and coordinated on efforts to hold Iran accountable and prevent further escalation. They discussed the situation in Lebanon and agreed on the need to work towards full implementation of UNSCR 1701 and a diplomatic resolution that allows civilians on both sides of the Blue Line to return safely home.

Prime Minister Keir Starmer’s speech in Berlin:

I’ve just had a very productive meeting with President Biden, Chancellor Scholz, and President Macron. 

We focused on two issues.

Firstly, the situation in the Middle East.

Let me start by saying that no one should mourn the death of the Hamas Leader Sinwar.

On his hands is the blood of innocent Israelis.

Killed on the 7th of October and over years of terror.

And also the blood of the Palestinian people.

Who suffered in the chaos and violence that he sought and celebrated.

We continue to support Israel’s right to self-defence.

Particularly in the face of the attacks by the Iranian regime. 

Allies will keep working together.

To de-escalate across the region. 

Because we know there is no military-only solution here.

The answer is diplomacy.

And now we must make the most of this moment. 

What is needed now is a ceasefire in Gaza.

The immediate and unconditional release of all hostages.

Immediate access for humanitarian aid.

And a return to the path towards the two-state solution.

As the only way to deliver long-term peace and security. 

The dire humanitarian situation cannot continue. 

And I say once again to Israel, the world will not tolerate any more excuses on humanitarian assistance. 

Civilians in northern Gaza need food, now.

The UK strongly supports UNRWA in the vital work it does in Gaza, across the OPTs and the region.

UNRWA must be allowed to continue its life saving support.

The suffering must end, including in Lebanon, where we need a ceasefire to implement a political plan based on UN resolution 1701.

That empowers the Lebanese Armed Forces.

Strengthens UNIFIL.

And allows communities on both sides of the border to return to their homes.

That delivers humanitarian and economic support to the people of Lebanon.

Supports democracy and bolsters the Lebanese State.

Second, we discussed the war in Ukraine.

Building on the conversation I had with President Zelenskyy at Downing Street last week. 

We remain united in our support for Ukraine.

We have always said that it is for the Ukrainian people to decide their own future.

So we’re clear, together with President Zelenskyy, that the only acceptable outcome is a sovereign Ukraine, and a just peace. 

We want to see Ukraine thriving and secure.

And we’ll work together to make it happen. 

And while the situation is incredibly tough.

It’s also true that Russia is getting weaker.

This war is soaking up 40% of their budget. 

Last month Russia suffered the highest daily casualty rate so far.

So we discussed how to speed up our support for Ukraine.  

And the UK is delivering. 

95% of the equipment that we promised to fast track in July is now in Ukrainian hands.

And together with the G7 we’re working to send $50 billion of further support to Ukraine.

Drawn from the proceeds of frozen Russian assets. 

So as Ukraine enters a difficult winter it’s important to say.

We’re with you.

We’re absolutely united in our resolve.

And we’ll back Ukraine for as long as it takes.

Leaders speak out on anniversary of 7th October attacks

Prime Minister Keir Starmer’s statement on one-year anniversary of the October 7th attacks:

7 October 2023 was the darkest day in Jewish history since the Holocaust. One year on, we stand together to remember the lives so cruelly taken. 

Over a thousand people were brutally murdered. Men, women, children and babies killed, mutilated, and tortured by the terrorists of Hamas. Jewish people murdered whilst protecting their families. 

Young people massacred at a music festival. 

People abducted from their homes.

Agonising reports of rape, torture and brutality beyond comprehension which continued to emerge days and weeks later. 

As a father, a husband, a son, a brother – meeting the families of those who lost their loved ones last week was unimaginable. Their grief and pain are ours, and it is shared in homes across the land. 

A year on, that collective grief has not diminished or waned.

Yet their strength and determination to cherish the memories of those they had lost continues, and our determination to bring those still captive home endures. I stand firm in our commitment to bring the hostages home, and we will not give up until they are returned.

One year on from these horrific attacks we must unequivocally stand with the Jewish community and unite as a country. We must never look the other way in the face of hate. 

We must also not look the other way as civilians bear the ongoing dire consequences of this conflict in the Middle East. I reiterate my call for immediate ceasefires in Gaza and Lebanon, and for the removal of all restrictions on humanitarian aid into Gaza.

We will not falter in our pursuit of peace and on this day of pain and sorrow, we honour those we lost, and continue in our determination to return those still held hostage, help those who are suffering, and secure a better future for the Middle East.

First Minister John Swinney expresses sympathy as he calls for peace:

First Minister John Swinney expressed his sympathy to the Jewish community as he remembers all those who lost their lives in the Hamas 7 October terror attacks a year ago.

Since the attacks, the Scottish Government has consistently called for the immediate release of all hostages, a ceasefire in Gaza, the urgent provision of humanitarian aid to all who need it, and a two-state solution with sovereign Israeli and Palestinian states.

The First Minister said: “The atrocious attacks carried out by the terrorist organisation, Hamas, on 7 October resulted in the worst single loss of Jewish life since the Holocaust. Jewish communities across the world, including here in Scotland, are deeply traumatised by the attacks.

“As we remember those who died, I express my sympathy to the Jewish community and all those who mourn. 

“I also remember the thousands of innocent people who have been killed in the crisis over the last year. Now more than ever, an immediate ceasefire is needed in Gaza, and the Middle East.

“As communities across Scotland reflect on the 7 October terrorist attacks and the subsequent loss of further innocent life that has followed, I pledge the unwavering support of my government to ensure our communities remain united, that all communities are kept safe and that we live in a Scotland where people of all faiths, and none, can live in peace.”

UK charters flight to leave Lebanon on Sunday as conflict escalates

Any remaining British nationals who want to leave are urged to register immediately

The UK has chartered a flight to leave Beirut tomorrow (Sunday 6 Oct) as tensions in the region escalate.

There are no more scheduled flights, due to a decrease in demand. However, the situation will be kept under constant review. 

Any remaining British nationals who want to leave Lebanon are urged to register with the Government immediately.

The Government has been advising British nationals to leave Lebanon since October last year due to a deteriorating security situation. So far three chartered flights organised by the Government have left Beirut, with a fourth to leave on Sunday. 

The Government added the extra capacity due to high demand for places on commercial flights and has enabled more than 250 additional people to leave in the last week.

The Government committed to charter flights as long as there was demand and the security situation allows. However, demand has now significantly reduced, and this Sunday’s flight is currently the only one scheduled.

Any British nationals who have not booked a place and still wish to secure a seat on the flight are advised to register immediately.

British nationals and their spouse or partner, and children under the age of 18 are eligible. All passengers must hold a valid travel document.

Dependants who are not British nationals will require a valid visa that has been granted for a period of stay in the UK of more than 6 months.  

UK government officials have been working round the clock in London, Beirut and the wider region to provide support to British nationals. A FCDO Rapid Deployment Team has also arrived in Lebanon to bolster the support offered by British Embassy officials.

Foreign Secretary David Lammy said: “The situation in Lebanon remains volatile, so I am glad that we have helped the many people who have heeded our advice to leave the country immediately.

“With demand falling, and the security situation deteriorating, there is no guarantee other options to leave quickly will become available. I urge anyone who wants to leave to register now.”

Sunday’s flight will depart from Beirut-Rafic Hariri International Airport and British nationals who have registered their presence with the Government will be sent details on how to request a seat.    

British nationals and their dependants should not travel to the airport unless they have a seat booked on a plane. 

The FCDO urges everyone to continue to follow the relevant travel advice, exercise caution, and monitor media in Lebanon for developments.     

The safety of British nationals is the top priority and around 700 troops and Foreign Office and Home Office staff, including Border Force officers, have been deployed to Cyprus for contingency planning.

https://twitter.com/i/status/1842097635412324705

The UK continues to call for a ceasefire between Lebanese Hizballah and Israel – although the UK continues to supply arms to Israel.

The UK Government says a ceasefire would provide the space necessary to find a political solution that enables civilians on both sides to return to their homes in safety. 

Given Israel leader Benjamin Netanyahu’s defiant comments, however, the chances of a ceasefire are slim.

If he won’t listen to the United States or the United Nations, will he really pay the slightest heed to Britain?

Joint Statement on additional strikes against the Houthis in Yemen

YESTERDAY, at the direction of their respective governments, the militaries of the United States and United Kingdom, with support from Australia, Bahrain, Canada, Denmark, the Netherlands, and New Zealand conducted an additional round of proportionate and necessary strikes against 36 Houthi targets across 13 locations in Yemen in response to the Houthis’ continued attacks against international and commercial shipping as well as naval vessels transiting the Red Sea.

‘These precision strikes are intended to disrupt and degrade the capabilities that the Houthis use to threaten global trade, and the lives of innocent mariners, and are in response to a series of illegal, dangerous, and destabilizing Houthi actions since previous coalition strikes on January 11 and 22, 2024, including the January 27 attack which struck and set ablaze the Marshall Islands-flagged oil tanker M/V Marlin Luanda.

‘Today’s strike specifically targeted sites associated with the Houthis’ deeply buried weapons storage facilities, missile systems and launchers, air defense systems, and radars.

‘The Houthis’ now more than 30 attacks on commercial vessels and naval vessels since mid-November constitute an international challenge. Recognizing the broad consensus of the international community, our coalition of likeminded countries committed to upholding the rules-based order has continued to grow.

‘We remain committed to protecting freedom of navigation and international commerce and holding the Houthis accountable for their illegal and unjustifiable attacks on commercial shipping and naval vessels.

‘Our aim remains to de-escalate tensions and restore stability in the Red Sea but let us reiterate our warning to Houthi leadership: we will not hesitate to continue to defend lives and the free flow of commerce in one of the world’s most critical waterways in the face of continued threats.”

UK DEFENCE AND ARMED FORCES STATEMENT:

On 3 February, Royal Air Force Typhoon FGR4s, supported by Voyager tankers, joined US forces in further deliberate strikes against Houthi locations in Yemen involved in their campaign targeting shipping in the Bab al Mandab and southern Red Sea.

The Typhoons employed Paveway IV precision guided bombs against multiple military targets identified by careful intelligence analysis at three locations. 

At As Salif, due west of Sanaa on the Red Sea coast, our aircraft targeted a ground control station inside a defensive position. This station had been used to control Houthi drones, both attack and reconnaissance types, launched from further inland, operating over the sea against international shipping. 

A second drone ground control station was confirmed to be at Al Munirah, on the same stretch of coastline. As with As Salif, the station provided direct control of reconnaissance and attack drones targeting shipping in the Red Sea, its position on the coast allowing it to maintain the line of sight data links such weapons require to target ships with any accuracy. 

The Typhoons also attacked a significant number of targets at Bani. An initial group of facilities there were successfully struck by the RAF on the night of 11 January, and since then a further set of buildings at the site had been positively confirmed as involved in the Houthi drone and missile operations and were duly targeted on this occasion.

As is standard practice with such operations by the Royal Air Force, the strikes were very carefully planned to ensure minimal risk of civilian casualties, and by bombing at night, any such risks were further mitigated